China’s AI race just got hotter with Moonshot AI’s Kimi K3, a free, open-weight model that’s outperforming top U.S. rivals like GPT and Claude — so much so that demand crashed their servers within days. The U.S. is now accusing Moonshot of stealing Anthropic’s tech via “distillation,” prompting White House warnings and potential sanctions, though China denies it. While skeptics question whether distillation alone could explain Kimi K3’s leap, its rapid release and global accessibility signal China’s AI surge is no fluke — and the world is watching as the tech rivalry heats up.

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